Why is Shriram Finance falling/rising?

As of 01-Sep, Shriram Finance Ltd is currently priced at 588.05, reflecting an increase of 7.2, or 1.24%. The stock has been gaining for the last two days, showing a return of 2.83% during this period, although it has underperformed its sector by 0.37%. Despite this recent uptick, the stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, Shriram Finance has seen a decline of 5.41%, and over the past month, it has decreased by 4.27%. However, the company has demonstrated strong long-term fundamentals, with a consistent return on equity of 13.03% and significant growth in net sales and operating profit. The stock's recent performance is supported by high institutional holdings at 68.95%, indicating confidence from more knowledgeable investors.
In the broader market context, Shriram Finance's performance has been relatively weak compared to the benchmark Sensex, which has declined by only 1.56% over the past week and 0.29% over the past month. While the stock has generated a negative return of 8.22% over the past year, its profits have increased by 12.4%, suggesting that the stock may be undervalued relative to its earnings growth. The PEG ratio of 1.1 indicates a fair valuation, and the company's strong financial results over the last seven quarters contribute to a positive outlook despite recent price movements. Overall, while the stock is currently rising, it faces challenges in the short term compared to the broader market.